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Iron ore exports from ports in the Visakhapatnam region have reduced drastically during this financial year. While Visakhapatnam and Kakinada deep water ports lost 30 per cent, Gangavaram has lost more than 80 per cent in iron ore handling during the current fiscal as compared with last year.
A senior official at Gangavaram port said the Centre had enhanced the export duty on iron ore to 30 per cent to discourage exports, and several state governments were imposing restrictions on ore mining. Besides, railways has increased the freight rates on ore transport. All these have led to a decline in ore exports, he added.
State-owned MMTC and NMDC are exporting 2.5-3 million tonne from Visakhapatnam port to other countries. Shipments from private iron ore players are negligible.
In the current year till March 15, Vizag port handled 7.1 million tonne ore as against 10 million tonne in the previous year, a fall of 30 per cent. Of the 7.1 million tonne, only around 2.5 million was exported to other countries and the remaining was handled for coastal movement, Vizag port sources said.
Kakinada port last year exported 1 million tonne and this year, it's just 700,000 tonne. Gangavaram port, on the other hand, exported only 271,000 tonne this year as again 2.1 million tonne last fiscal.
This decline in ore handling have seen the ports lose more than Rs 20 crore in handling charges.
However, Sravan Shipping managing director and chairman, CII-Visakhapatnam Sambasiva Rao said fall in iron ore exports was a good sign.
"Ports are capable of bringing other cargos to compensate the iron ore loss. Instead of exporting ore, if the government supplies this to the domestic steel industry, we can export more high-grade steel products, which will fetch more value," he said.
